When the Fed wants to lower the Federal funds rate, it:
A. Increases the discount rate
B. Increases the reserve ratio
C. Buys bonds from banks and the public
D. Sells bonds to banks and the public
C. Buys bonds from banks and the public
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In an oligopoly price-fixing game, each player tries to
A) minimize the market shares of its opponents. B) maximize its own market share. C) minimize the profits of its opponents. D) maximize its own profit.
Monetary policy decisions, such as the target growth rate in the money supply or the target level for interest rates, are set by the
a. president and congress. b. Federal Reserve Board of Governors. c. Shadow Open Market Committee. d. presidents of the Federal Reserve banks. e. Federal Open Market Committee (FOMC).
Wealthy people will tend to have vertical labor supply curves
A) only if their income effect just offsets their substitution effect. B) only if their income effect is greater than their substitution effect. C) only if their income effect is less than their substitution effect. D) only if they don't have an income effect.
Explain how the Internet has affected the average fixed cost of a daily print newspaper
Please provide the best answer for the statement.